Economic Trends/Outlook in Hungary

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Economic Overview

Hit by the financial crisis head-on, the country was saved from banckruptcy by the International Monetary Fund. After experiencing a deep recession in 2009, the country returned to a timid growth in 2010, estimated at 0.6% of the GDP and driven essentially by exports.

The newly-formed Orban government announced a 29-point stimulus plan, which aimed to stimulate the economy and reduce the budget deficit, especially through taxing financial institutions (this controversy lead to the premature department of the IMF and the EC). An emergency series of exceptional fiscal and parafiscal measures was also quickly passed, essentially affecting the energy, telecommunications and food distribution sectors.

The economic crisis has worsened the employment situation: according to estimations, in 2010 the unemployment rate increased to 10.8%.

Main Indicators 2009 2010 2011 2012 2013
GDP (billions USD) 129.34e 128.96e 133.68e 140.05e 147.30e
GDP (Constant Prices, Annual % Change) -6.7e 1.2e 2.8e 2.8e 2.8e
GDP per Capita (USD) 12,894e 12,879e 13,370e 14,029e 14,777e
General Government Balance (in % of GDP) -0.9e -3.1e -4.3e -3.7e -3.3e
General Government Gross Debt (in % of GDP) 78.4e 80.4e 76.6e 76.9e 77.1e
Inflation Rate (%) 4.2 4.9e 4.1e 3.5e 3.0e
Unemployment Rate (% of the Labor Force) 10.1 11.2e 11.5e 10.9e 10.7e
Current Account (billions USD) 0.52e -0.63e -1.55e -3.40e -
Current Account (in % of GDP) 0.4e -0.4e -1.0e -2.1e -

Source: IMF - World Economic Outlook Database

Note: (e) Estimated Data


Main Sectors of Industry

The agricultural sector, which was predominant in the country's economy for many years, now only represents slightly less than 4.5% of the GDP and employs about 4% of the active population. The main crops are cereals, fruits, vegetables and wine.

The industrial sector contributes to one-third of the country’s GDP and is very open to foreign investors. Automobile and electronics sectors are the two main sectors given that they account for 30% of the country's exports and generate 15% of the GDP.

The services sector contributes nearly to two-thirds of the GDP.The global financial crisis had detrimantal effects on Hungarian industries that work on the external market but also on the national market where demand was reduced.

Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 4.5 32.1 63.3
Value Added (in % of GDP) 4.3 29.4 66.2
Value Added (Annual % Change) 50.6 -0.8 -1.4

Source: World Bank - Last Available Data.

For more detailed background on Industries in Hungary, click here.

Indicator of Economic Freedom

Moderately free
World Rank:
Regional Rank:

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation


Country Risk

See the Country Risk Analysis Provided By Ducroire.


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